Skyrocketing Battery Recycling Market Revenue to Surpass USD 69.4 Billion by 2034, Exhibiting a Compound Annual Growth Rate (CAGR) of 13.6%
The global battery recycling market is set for significant expansion over the next decade, with projected growth ranging from approximately $49.8 billion to $77.1 billion by 2034. This forecast, according to multiple recent market research reports, is driven by a compound annual growth rate (CAGR) of between 10.1% and 11.2% from 2025 to 2034.
Key factors contributing to this growth include the rising demand for batteries in consumer electronics, electric vehicles (EVs), and energy storage systems. Regulatory pressure and sustainability goals are also pushing for recycling as a means to reduce environmental impact and the reliance on mined raw materials like lithium, cobalt, and nickel.
The increasing volumes of end-of-life batteries, particularly from widespread EV adoption, necessitate efficient recycling solutions. Advances and investments in recycling technologies, such as hydrometallurgical, pyrometallurgical, mechanical, and emerging direct recycling methods, are improving efficiency and recovery rates.
Industry collaborations are establishing closed-loop supply chains, reusing recovered materials in new battery production, supporting circular economy models. The growing second-life battery applications and global efforts to standardize and expand battery collection and recycling infrastructure, especially in the Asia Pacific region, are further catalysts for market growth.
Significant events in the industry include Exide Industries launching a pilot lithium-ion battery recycling unit in Kamalganj, India, capable of processing 1,200 tonnes/year of end-of-life batteries in April 2025. BASF SE began commercial operations at its flagship Black Mass plant in Schwarzheide, Germany, in June 2025, capable of processing up to 15,000 tonnes/year of end-of-life lithium-ion batteries.
By 2030-2040, recycling and reuse efforts could significantly reduce primary supply requirements for minerals in batteries, making battery recycling more economically viable, according to the International Energy Agency (IEA). The rise in second-life battery applications is significantly reshaping the global battery recycling market, with repurposed batteries being used in energy storage solutions and less demanding EV applications.
Umicore, for instance, inaugurated phase two of its Li-Refinery in Hobart, Tasmania, increasing recycling capacity to 14,000 tonnes of battery-grade nickel and cobalt per year by 2026.
Despite the US tariffs on Chinese-made batteries increasing the cost of new batteries, reducing demand for battery replacements and the number of used batteries available for recycling, the overall market growth remains robust. Approximately 3.4 million end-of-life EV batteries, totaling 953 GWh, are expected to be discarded by 2025, yet these batteries can still be used in secondary applications like stationary storage.
In conclusion, the market size is projected to grow several-fold by 2034, primarily fueled by skyrocketing EV adoption, stricter environmental regulations, and technological improvements in recycling processes that conserve critical materials and reduce environmental damage. The forecasted CAGR mostly centers around 10-11%, reflecting a mature but rapidly scaling market driven by strong demand and policy support.
- The growth in the global battery recycling market is also connected with the finance sector, as investments in recycling technologies and industry collaborations are essential for improving efficiency and recovery rates.
- The technology industry plays a significant role in driving the global battery recycling market, particularly as advances in recycling processes focus on conserving critical materials used in batteries, such as lithium, cobalt, and nickel.
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